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Cheaper? - China - Losing cheap labor allure
More U.S. companies find savings are drained by errors, shipping costs and engineering changes.
STERLING HEIGHTS,Detoit,MI,USA -The Detroit News, by Ron French -Aug 28, 2005: -- Hal Zaima was in love with China... The rush to China has slowed to a jog. Companies lured to the communist nation by the promise of low wages are discovering much of the savings are being drained by transportation costs, engineering changes and error rates... While U.S. companies are still moving to China, industry experts say momentum has slowed, and a question that seemed unthinkable even a year ago now is being asked in the offices of Michigan auto suppliers: Is it really cheaper to produce parts in China?... The real winner might be American workers' original outsourcing nemesis: Mexico...
Foreign-owned factories along the U.S.-Mexican border, which had declined five years ago, have bounced back. More than 1,160,000 people now are employed in 3,288 plants. "Manufacturing isn't just increasingly global," Zaima said, "it's increasingly dynamic"...
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